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The owner of a hair salon spends $1,000,000 to renovate its premises, estimating that this will increase her cash flow by $220,000 for the next
The owner of a hair salon spends $1,000,000 to renovate its premises, estimating that this will increase her cash flow by $220,000 for the next 20 years. Construct the NPV Profile as a function of the discount rate. At what discount rate does her decision to renovate become untenable?
There is no graphical representation or anything given for this question and I am not sure where to even begin.
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